MARKET CLOSE: NZ shares down, Air NZ and Contact drop while Scales, Oceania Health rise
By Sophie Boot
Dec. 18 (BusinessDesk) - New Zealand shares dropped, led lower by Air New Zealand and Contact Energy while Scales Corp
and Oceania Healthcare gained.
The S/NZX50 Index fell 16.71 points, or 0.2 percent, to 8,344.15. Within the index, 26 stocks rose, 16 fell and eight were
unchanged. Turnover was $197 million.
"It's a real mixed bag today, which is a bit surprising given Australia is up quite nicely," said Grant Williamson,
director at Hamilton Hindin Greene. "Volumes haven't been too bad, institutions are doing a bit of business on the
market - they'll be wanting to get things tied away before the end of the year."
Markets across Asia traded higher this afternoon, with Australia's S/ASX 200 up 0.7 percent, Hong Kong's Hang Seng rising 0.5 percent and Japan's Nikkei 400 gaining 1.4 percent at 5:10pm
New Zealand time.
On the local index, the worst performer was Air New Zealand, which dropped 3.8 percent to $3.175, with Contact Energy
down 3.6 percent to $5.57 and Mercury New Zealand falling 3.2 percent to $3.37.
Scales Corp was the best performer, up 3.7 percent to $4.77. The stock has gained this month since it forecast full-year
earnings to be at the upper end of guidance on the performance of its horticulture division and new acquisitions, and
said earnings will rise in 2018.
"It has been having a great run lately, it's up 20 percent in the last two weeks. The result and guidance all looked
very good," Williamson said.
A2 Milk rose 2.7 percent to $7.97, Trade Me Group gained 1.9 percent to $4.92, and Stride Property advanced 1.7 percent
to $1.78.
Outside the benchmark index, Oceania Healthcare rose 3.1 percent to 99 cents. It has agreed to buy a vacant lot in
Auckland's St Heliers valued at $15.6 million for an undisclosed sum, which it plans to develop into a new retirement
village.
The Auckland-based company entered into an unconditional deal to buy the 8,945 square metre site, which is expected to
settle at the end of the week, it said in a statement. Oceania plans to develop an integrated retirement village and
aged care facility on the site, which overlooks Auckland's harbour, and will start work on getting the appropriate
consents immediately.
(BusinessDesk)